Acer plans to acquire Gateway in a deal worth $710 million that Acer says will make it the worlds third-largest PC vendor.
Under terms of the agreement announced Monday, Acer will purchase all of Gateways outstanding shares for $1.90 per share. The deal has already been approved by the boards of directors at both companies and should be completed by the end of this year, subject to government approval, Acer said in a statement. Gateways shares ended at $1.21 Friday on the New York Stock Exchange.
"This is the biggest acquisition in Acers 30 year history," said J.T. Wang, Acers chairman, speaking at a news conference in Taipei.
"After this acquisition, we are solidly No. 3 in the global PC market," Wang said.
Acers acquisition deal with Gateway also derails rival Lenovo Groups plans to acquire Packard Bell.